Conversion tracking can be the difference between the success and failure of your business. Take this subject seriously and your website could rise to the top of your industry. Don’t, and your site will falter.
Conversion Tracking Tip #1
Conversion Tracking can help you ensure that your marketing spend is generating a reasonable rate of return. It helps you identify the keywords that are turning into actionable items such as purchases, leads, or newsletter subscribers. If you are launching a website that sells something whether it be a membership or a product, you will be able to use conversion tracking to drastically scale your business.
Conversion Tracking Tip #2: Identify the Average Value
When you are conducting Conversion Tracking with Google Analytics and Adwords, you will be able to assign a value to each type of conversion. As your business continues, you will be able to track the lifetime value of a customer. Once you identify the one time and life time value of a customer, you have identified how much you can spend to acquire a customer profitably. This is a huge advantage in the marketing game. One example would be if your average customer spent $20 per month and stayed subscribed to your website for 8 months. This would be an average value to you of $160. This would mean that you could spend up to $160-Your Cost +1 to acquire your customer and still be profitable. Obviously, you will want to make sure you are making more than ‘minimal profit’, but, you get the idea.
Conversion Tracking Tip #3: Refine Your Keywords
Many keywords that you bid on with ppc will end up being relatively unprofitable. The key to ppc advertising is to fail fast. If you see that a keyword does not convert after a few hundred dollars of adspend, either modify your unique landing page or stop bidding on that keyword. The key is to widdle down to the keywords that are generating business for you and focus on those. As you generate a return, you can then add other keywords and consistently widdle down so you are consistently adding a few profitable keywords on a regular basis.
Conversion Tracking Tip #4: Scale on Cost per Conversion
As you garner more data for your cost per conversion, you will have a lot of power to expand your marketing campaigns while feeling comfortable. For example, if you generate $100,000 in profit every time you spend $25,000 in ad dollars, your goal should be to spend your $25,000 on profitable keywords as quickly as possible. The idea is to keep your marketing money working for you and expand accordingly.
